Emaar climbed 3.4 percent, its biggest advance since Sept.
5. The developer’s quarterly profit missed estimates, but analysts were largely
bullish.
“Despite some ‘minor’ corporate distractions, we think the
company is in a better financial position now than it was six months ago. We
reiterate our buy rating at these levels,” Chet Riley, Nomura property analyst,
wrote in a research note.
Dubai’s index climbed 2.6 percent to its highest finish
since April 15.
Abu Dhabi’s First Gulf Bank (FGB) rose 1.5 percent after its
quarterly profit beat consensus.
“FGB’s results were based on stronger rising net interest
income,” said Raj Madha, Rasmala senior banking analyst. “Loan quality also
seemed to be under control. The only disappointment was from its
trading-related income, but this is of a volatile nature.”
Abu Dhabi Commercial Bank fell 0.4 percent. On Tuesday, it
posted a jump in quarterly profit.
“ADCB was in many ways the opposite (to FGB), reporting
slightly disappointing net interest income, but trading-related income was
extremely strong,” adds Madha. “Both FGB and ADCB showed improved loan quality.
Some people are worried about loan growth, but that isn’t what banks should be
focusing on.”
Oman’s Raysut Cement rose 0.3 percent, reversing earlier
losses, after saying it would buy the United Arab Emirate’s Pioneer Cement
Industries, which is based in the northern emirate of Ras Al-Khaimah.
“Raysut Cement is very successful in selling cement in the
south of Oman from its base in Salalah, but it has higher costs transporting
cement to northern Oman,” said Adel Nasr, United Securities brokerage manager.
“So buying the Ras Al-Khaimah company will reduce
transportation costs and help it compete more strongly with Oman Cement in northern Oman, which is where most
of the demand is.”
Kuwait’s main index hit a two-week high. Yet many investors
use the weighted index, which is up 24 percent in 2010 to be the best
performing Gulf Arab benchmark.
“Most institutional investors have been underweight in
Kuwait this year, but enthusiastic local retail investors have enabled Kuwait
stocks to rally,” said Shakeel Sarwar, head of asset management at Bahrain’s
Securities & Investment Co. (SICO).
“These investors have been over-optimistic and while the
market may continue to do well in the short term, in the medium to long term,
Kuwait’s quality of earnings are the lowest and valuations the highest, so the
market will probably suffer a sharp correction.”
Meanwhile, Abu Dhabi’s index fell 0.2 percent to 2,817
points, however, Kuwait bourse rose 0.3 percent to 7,068 points.
Qatar’s stocks climbed 0.1 percent to 7,805 points and
Oman’s index rose 0.2 percent to 6,582 points but Bahrain’s bourse slipped 0.1
percent to 1,463 points.
